How a Type B Life Plan Community Can Offer Valuable Tax Deductions

A Life Plan Community’s Type B contract like Brice Pointe’s can give you a right-sized, maintenance‑free lifestyle today while also offering potential tax advantages on a portion of your entrance and monthly fees that may qualify as prepaid medical expenses under current IRS rules. For many retired adults in New Bern, this mix of lifestyle, long‑term security, and possible tax deductions is what makes an entrance fee community attractive.

What is a Life Plan Community?

A Life Plan Community (also called a Continuing Care Retirement Community) combines independent living with on‑site levels of care such as assisted living, memory care, rehabilitation, and skilled nursing. This “one‑campus model” means you move in while you are active and independent – enjoying community activities, a robust social life and convenient amenities – then access additional support later without leaving the campus.​

At Brice Pointe in New Bern, residents will live on a 70‑acre lakeside campus with maintenance‑free residences, life-easing services, and access to a full continuum of care, so everyday life feels like an upgrade even as you quietly have a plan in place for the future. This model offers particular peace of mind for couples who want to remain close, even as their care needs evolve over time.

How a Type B Contract Works

In a Type B contract (sometimes called,“modified”), you pay a one-time entrance fee plus an ongoing monthly service fee that covers your residence, services and amenities, along with a defined amount or discount for future health care on campus. Typically, the entrance fee and monthly fees are lower than in a Type A Life Care contract, but you still receive either a set number of days in higher levels of care free or ongoing care at a discounted rate if your needs increase.​

Brice Pointe’s financial model is a Type B modified contract paired with an 80% refundable entry fee, which means that if you move out or your estate settles your affairs, 80% of the original entrance fee is returned once your residence is resold. This approach allows you to avoid paying in full for care you may never need, while still securing priority access and cost protections if your health changes. This model pairs well with a long‑term care insurance policy.​​

Tax advantages of a Type B community

For residents of Life Plan Communities, portions of the entrance fee and monthly service fees are often treated as a prepaid medical expense because the community commits to providing access to health‑related services overtime. Check with a tax consultant the deductible portions of Life Plan Community fees.

Communities typically calculate what percentage of their overall costs relate to health services and then report that percentage to residents each year, sometimes using a tax statement such asForm 1099‑MISC to show the amount that may qualify as a medical expense. Even if you are living independently and not yet using assisted living or nursing care, you may still be able to claim this prepaid medical portion as part of your itemized deductions, subject toIRS rules and your individual situation.​

Because tax rules change and everyone’s finances are different, it’s essential to review your options with a tax professional or financial advisor experienced in Life Plan Communities, rather than relying on general information as tax advice. They can help you understand how an entrance fee and ongoing fees at Brice Pointe might interact with your other medical expenses, retirement income, and long‑term care insurance.​

The value of Brice Pointe, an entrance fee community

Entrance fee communities are designed to trade a one‑time investment for long‑term stability, predictability and peace of mind. By paying an entrance fee, many residents secure lower monthly costs than comparable rental communities, along with guaranteed access to on‑site health services that might otherwise require multiple moves or higher out‑of‑pocket costs.​

At Brice Pointe, the 80% refundable entrance fee structure helps you preserve your estate for your heirs while still giving you the everyday benefits of a worry-free, maintenance‑free lifestyle and the security of knowing that higher levels of care are available on the same campus.

When you combine these lifestyle advantages with the possibility that part of your entrance and monthly fees may count toward a medical expense tax deduction, a Type B contract can be a strategic way to manage both your quality of life and your long‑term financial plan throughout retirement.